The following information is available for the Soupy Company: $\begin{array}{ll}
\text { Sales } & \$ 1,000,000 \
\text { Invested capital } & 350,000 \
\text { ROI } & 10 \%
\end{array}$ The capital turnover ratio is:
A) 0.1000
B) 0.3500
C) 2.8571
D) None of these answers is correct.

Question

Quizplus · Accepted Answer

The capital turnover ratio is calculated as Sales divided by Invested Capital. Here, it is $1,000,000 / $350,000 = 2.8571.

The Following Information Is Available for the Soupy Company Sales $1,000,000 Invested capital 350,000 ROI 10%\begin{array}{ll}\text { Sales } & \$ 1,000,000 \\\text { Invested capital } & 350,000 \\\text { ROI } & 10 \%\end{array} Sales Invested capital ROI ​$1,000,000350,00010%​

The Following Information Is Available for the Soupy Company $\begin{array}{ll}\text { Sales } & \$ 1,000,000 \\\text { Invested capital } & 350,000 \\\text { ROI } & 10 \%\end{array}$